Re: Kick the can
in response to
by
posted on
Aug 24, 2017 11:50PM
Hey Toinv, I would not say that I'm worried. Anxious to see on what terms this goes forward, yes. From a business perspective, as long as the science holds I see Eastern continuing to support the RVX program the way they have done for the last number of years now while at the same time continuing to protect their downside risk. On a fully diluted basis, and considering their ownership of Zenith (RVX RP's), they probably own roughly 25% of RVX's potential success and I don't see them doing anything to jeapordize the upside potential or lose their downside protection. To date they have been a more than reasonable major shareholder and, never say never, but I think their track record would suggest they continue on this way. Additionally, as I've said before my opinion is that Hepalink would probably love to be in Eastern's very well protected position if given the chance.
JMO but starting with the delayed AGM and the running on a shoestring, down to the wire, financial management since suggests to me that perhaps senior management do feel they are close to closing a big deal of a partnership or takeover nature. We will of course never know unless it happens but why would management do a big more dilutive financing if they thought they are on the brink of a deal which would see a large financing unnecessary. This is the reason I said in my first post today that I would view it as potentially positive if we get told that just guarantees for a term extension of the existing loan are all that is required at this point in time. All JMO
One comment about your 3 point MACE observations Toinv, I agree that we don't have much in the way of concrete stats but it was suggested to me that over time "a number of" 5 point MACE's will turn into 3 point MACE's. Makes sense to me given the high unmet need in diabetic CVD and one would think that a 2 year vs 6 month trial would highlight this. Additionally being a first in class therapeutic will have quite a high burden of proof so to speak... I guess time will tell.